Net income available to common stockholders $ 696 $ 648
Common dividends $ 201 $ 200
Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
2020 2019
Assets Cash $ 650 $ 600
Short-term investments 110 100
Accounts receivable 2,750 2,500
Inventories 1,450 1,200
Total current assets $4,960 $4,400
Net plant and equipment 3,850 3,500
Total assets $ 8,810 $ 7,900
Liabilities and Equity Accounts payable $ 1,300 $ 1,200
Accruals 650 600
Notes payable 186 100
Total current liabilities $ 2,136 $ 1,900
Long-term debt 1,300 1,200
Total liabilities $ 3,436 3,100
Common stock 3,679 3,600
Retained earnings 1,695 1,200
Total common equity $ 5,374 $ 4,800
Total liabilities and equity $ 8,810 $ 7,900
Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions.
a.What is the net operating profit after taxes (NOPAT) for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.
$ million
b.What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.
2020: $ million
2019: $ million
c.What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.
2020: $ million
2019: $ million
d.What is the free cash flow for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Cash outflow, if any, should be indicated by a minus sign. Round your answer to the nearest whole number.
$ million
e.What is the ROIC for 2020? Round your answer to two decimal places.
%
f.How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.
After-tax interest payment $ million
Reduction (increase) in debt $ million
Payment of dividends $ million
Repurchase (Issue) stock $ million
Purchase (Sale) of short-term investments $ million
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
